Ministers from the 14 participating countries announced their agreement on two of the IPEF's four pillars: clean economy and tax and anti-corruption measures. With the agreement on the third pillar of supply chains made six months earlier, this arrangement in the economically most vibrant region of the world seems to be almost in place. However, uncertainties remain about the outcomes regarding the last pillar, trade, given the disagreements among participants.
IPEF negotiations were formally initiated after May 2022, with the participating countries expressing their shared commitment to develop a "free, open, fair, inclusive, interconnected, resilient, secure, and prosperous Indo-Pacific region... to achieve sustainable and inclusive economic growth". The negotiations did not begin with the desired momentum as India opted out of the trade pillar in the initial phases of engagement.
At least four facets of the IPEF were evident as the negotiations were initiated.
First, the US, which crafted the IPEF, did not propose the arrangement as a typical free trade deal focused on lowering tariffs.
